Collections

Student Accounts Receivable Collections

It is the policy of the District to ensure the timely and systematic collections of delinquent student accounts receivable resulting from unpaid tuitions and fees, dishonored items, financial aid overpayments, financial aid deferments that do not cover fees in full, third party receivables, and unpaid emergency loans.

All account balances not paid in full when due are the sole responsibility of the student. The District expects to recover 100% of the debt amount and the student is responsible for all costs incurred by the District to collect such debt. These include: late fees, returned check fees, collection costs charged by the collection agencies usually 25% to 33% of debt, the California Community College’s Chancellor’s Office Tax-Offset Program administrative fee of 25% of the debt, litigation/attorney’s fees, court costs and interest. Our Accounting staff is available to discuss your financial difficulties and recommended a payment plan.

The District participates in the California Community Colleges Chancellor’s Office Tax Off-Set Program (COTOP) and use the services of Third party collection agencies to recover unpaid student receivables. These are described as follows:

Franchise Tax Board Intercept Collections Program (COTOP)

For student accounts receivable that are past due, the District has the option of assigning these accounts on an annual basis to the Franchise Tax Board (FTB) Intercept Collections Program. This program intercepts the state tax refunds of Californians who owe delinquent amounts to state and local agencies. FTB also intercepts California State Lottery prizes. On October 15 of each year, the District submits an intent to participate letter to FTB. By October 31, the District must send pre-intercept notices to those students who will be sent on December 15 of that same year if payment is not received in full. By January 15 of the next year, the District will receive a listing of the accounts that have been accepted by the program. The intercept program ends July 31 with additions, modifications and deletions occurring throughout the period of January 15 through July 31. All funds collected through the intercept program are disbursed to the District via the State Controller’s Office. Student are notified that the District expects to recover 100% of the debt and the FTB and Chancellor’s Office assess an administrative fee equal to 25%. This additional collection/administrative fee is assessed and paid by the student.

Please be aware that this debt will NOT be submitted to any major credit agencies

Outside Collection Agencies

The District has contracted with collections agencies to provide collection services. Only those accounts that are past due will be considered for assignment to a collection agency. Prior to assigning the debt to a collection agency, the District will notify the student in writing at the address of record that the accounts receivable debt will be turned over for private collections unless the debt is paid or appealed within the specified time period. This is accomplished with a Pre-Collect letter that is sent by the collection agency referring the student to the District to arrange payment. If the debt is paid within 15 calendar days from the date of the Pre-Collect letter, no collection fees will be assessed to the student. Collection agencies charge a contingency fee which is approximately 33% of the account balance assigned to the agency. This additional collection fee is assessed and paid by the student. Collection agencies use a variety of techniques to locate, contact, and collect from debtors. However, these agencies must comply with the Federal Fair Debt Collection Practices Act at all times.

Collection agencies are required to report the debt to the National Credit Bureaus and this may affect your credit report.

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